Risk Management Consulting
November 20, 2018
Ira Kawaller - Managing Director
Derivative contracts are often portrayed as the bad boys of the financial marketplace, but this characterization misrepresents most derivatives and their uses. In fact, most deriva...
September 20, 2018
Under the rules of fair value hedge accounting, a prerequisite condition is that the hedge should be highly effective in offsetting this specific value change – i.e., the value cha...
July 3, 2018
The fact is, one leg of the swap does serves as an
offset, but the other leg delivers a wholly unpredictable result
that will vary, depending on the path of the variable interest
June 22, 2018
Heidi Lindahl, Marketing Manager
Most banks and credit unions have similar business models – they fund long-term assets (loans to customers) with short-term liabilities (deposits from customers). Current market c...
November 28, 2017
Free Webinar and Earn CPE credit: 3-step guide to hedging interest rate risk.
October 3, 2017
The bank effectively trades the two swaps simultaneously. We start with the consideration of the two, respective at-market swaps – i.e., swaps that have a starting value of zero, w...
July 5, 2017
Qualifying for shortcut on fair value hedges requires structuring the swap with the following features: (a) the hedging derivative’s notional amount equals the principal of the hed...
December 6, 2016
While this minor disparity in the effective fixed rate, ex post, relative to its ex ante anticipated fixed rate would likely justify the assessment that the hedge will perform quit...
July 5, 2016
With this orientation, the bank would typically seek to hedge all or a portion of the uncertain funding costs that would be expected to arise during the period for which the loan’s...
February 3, 2016
Publication: AFP Exchange
Many companies with variable-rate funding look to derivatives to transform their variable interest-rate exposures to synthetic fixed-rate debt....
Introducing the New AMERIBOR...
August 26, 2019
Advancements Toward Libor Pha...
July 24, 2019
HedgeStar Welcomes Megan Roth...
July 19, 2019
HedgeStar’s Landon Brodersen,...
July 15, 2019
HedgeStar’s Tim Potter promot...
July 8, 2019
Hedge Accounting (80)
ASC 815 (56)
Interest Rate (34)
HS University (21)
Published Articles (65)
Risk Management (47)
Cash Flow Hedges (4)
Fair Value Hedges (4)
Trading/Investing with Derivatives (5)
CPA Journal (1)
MPT Services (1)
Affiliate Companies (1)
Litigation Support (1)
Cash Flow (1)
Last of Layer (1)